Patrick plans to slash spending, cut local aid by $9M

BOSTON -- To help close a steep budget gap caused by sluggish tax collections, Gov.

Click here to see November's state revenue projections.

Deval Patrick will slash spending by $225 million and ask the Legislature to cut funding to cities and towns by 1 percent.

On Monday, two top lawmakers said the state's budget situation does not warrant cutting local aid. Unrestricted local-aid funds municipal services such as police and fire departments, but does not impact education funding.

"I don't think this is draconian," said Patrick during a Tuesday afternoon press conference. "Obviously, every city and town worries about an impact on their local aid. This is relatively modest. We're spreading the pain as broadly as possible."

The head of the Massachusetts Municipal Association said the proposed $9 million, or 1 percent, local-aid cut is larger than it sounds, given that unrestricted local aid has already been reduced by $416 million over the past four years.

Advertisement

"If the governor has the authority to cut local aid midyear, then that means there is a major question mark looming over every single community's budget," said Geoff Beckwith, whose group represents the state's 351 cities and towns. "They'll have to take reductions in programs and services so every community will be impacted."

Patrick has proposed restoring the cut to local aid if Lottery profits exceed expectations.

"Obviously, every city and town worries about an impact on their local aid. ... We re spreading the pain as broadly as possible." Gov. Deval Patrick

Patrick also announced plans to further chip away at the state's estimated $540 million budget gap by ordering spending cuts to nursing homes, special-education funding, school transportation for the homeless and reimbursement rates for hospitals that treat low-income patients.

Patrick is using his authority under state law to unilaterally implement $225 million in spending cuts to agencies within the executive branch. The 1 percent cut will result in more than 700 new positions that were funded, but not filled, being eliminated form the budget.

Patrick is also asking the Legislature to approve using $200 million from the state's rainy-day fund. He wants to save another $25 million by reducing the budgets of the judiciary, constitutional officers and other non-executive departments by 1 percent.

Senate and House budget chiefs Stephen Brewer and Brian Dempsey told State House News Service on Monday that local-aid cuts should not be considered as part of a deficit-reduction plan. Lawmakers are expected to vote on the governor's plan when they return to Beacon Hill in January.

State Rep. Kevin Murphy, D-Lowell, called the proposal "a tough cut," but acknowledged that difficult decisions must be made to address the state's fiscal woes. Lowell stands to lose $213,045 under the proposal, while Chelmsford would lose $42,930, Billerica $49,253, Dracut $29,635 and Tewksbury $23,542.

"There's never an appetite for it, but you do have to be realistic," said Murphy. "You can't just sit back and say we're not going to cut local aid and not offer any alternative."

In Leominster, state Rep. Dennis Rosa said the proposal could give municipal managers headaches. Leominster stands to lose $48,408 under the proposal, while Fitchburg would lose $72,181.

"I know 1 percent doesn't sound like a lot, but it's going to impact services because the budget has already been set," said Rosa, a Democrat. "It's going to have a negative impact."

Patrick says he believes the shortfall in revenue is largely due to business uncertainty surrounding the looming "fiscal cliff." If President Obama and Congress fail to reach a deal, Patrick said, the state could lose $300 million this fiscal year and $1 billion in the next fiscal year.

"The cost of inaction is immense," he said.

Patrick said the current budget situation does not warrant exploring tax increases, but he added that the Legislature is going to have to address a transportation deficit next year.

"We are going to have to put before the Legislature and the public a long-term financing plan for transportation," said Patrick. "There are some other unmet needs, and those things are going to require some additional revenue."

Welcome to your discussion forum: Sign in with a Disqus account or your social networking account for your comment to be posted immediately, provided it meets the guidelines. (READ HOW.)
Comments made here are the sole responsibility of the person posting them; these comments do not reflect the opinion of The Sun. So keep it civil.